| CREOP

Harvard Lofts is a stabilized 8 unit, fully-furnished midterm rental apartment building located in Royal Oak, Michigan. The units are all one bedroom one bath, approximately 600 square feet with a washer and dryer in each unit. There are 8 parking spaces for the apartment building. The property is 100% occupied grossing $16,000 per month.
The Harvard Lofts are a fully furnished, midterm rental property. Each unit is fully equipped for the tenant to move in with just their luggage, and the property is 100% maintained by the landlord. Midterm is no less than 3 months, with some tenants asking to stay full term (12 months). Given the proximity of the apartment building (walkable to Beaumont hospital) this is attractive for travel nurses, medical students, or other professionals who work at the hospital. The property produces excellent cash flow, given that rents are about 65% higher than what market rents would be, for a typical 1 bedroom apartment.
The property went through a complete renovation over the past 18 months. New electrical, plumbing, flooring, appliances, roofs, and finishes were applied to each unit. Nothing was spared as if the unit were brand new, allowing very low maintenance for the next owner.
The property is best suit for midterm rentals due to the outstanding location. Harvard is adjacent to Royal Oak Beaumont Hospital which is the most frequented hospital in the area. There are over 7,500 employees at the hospital alone - including over 500 residents and fellows. There are many students coming and going from the hospital, who need short term rentals that are completely furnished. The hospital is not only walkable - but there is a major grocery store on the same block, as well as a dozen retail shops and restaurants. There are two other apartment midterm rental properties across the street - that are listed for $400 per month higher than Harvard, and are not as well kept. This not only shows there is room for rent growth, but keeping the rent slightly lower will keep the midterm occupancy higher.
There is also potential upside in having all of the units become short term rentals, or have partial short term rentals (air BnB, VRBO etc.) According to AirDna, the average nightly rate in the area is around $125 per night, with 65% occupancy. This comes out to around $3,800 gross per month per unit, before expenses. Right now the owner is operating as 3 to 12 month leases at $2,000 per month - in order to keep maintenance and turns down.
Royal Oak, Michigan has extremely strong economic and demographic indicators. There are over 300,000 people who live within a 5 mile radius of the site, with an average household income of over $130,000 per year and median income of $90,000 per year. The area is continuing to grow - with a projected additional 2% over the next several years. There is not much land left to develop in the city - limiting housing and putting an upward pressure on rents, and home prices.